M Benefit Solutions – Bank Strategies works with clients to help ensure that benefit programs and their financing are compliant with applicable laws, rules, regulations, and prescribed practices, including:

  • The Employee Retirement Income Security Act of 1974 (ERISA)
  • Federal and State Banking Laws
  • State Insurance Laws

OCC Bulletin 2004-56 acknowledges that “life insurance holdings can serve a number of appropriate business purposes” and further repeats previous authoritative statements which require that the purchase of life insurance must address the “identified needs” of the bank “consistent with safe and sound banking practices.” The OCC has historically found insurance purchased in connection with employee compensation and benefit plans to fall into this category.

Based on the requirements of OCC Bulletin 2004-56, M Benefit Solutions – Bank Strategies has developed a Pre-Implementation Analysis process intended to assist our clients with the review of factors to consider when making a BOLI purchase consistent with principles of soundness and safety. One component of this analysis entails ensuring that all applicable compliance risks, including state insurable interest and lending laws, are addressed.

In addition to working with clients to ensure that programs are compliant at implementation, as part of our ongoing compliance and administration services M Benefit Solutions – Bank Strategies continuously monitors the employee benefits, insurance, and tax regulatory climates to ensure ongoing compliance of our clients’ programs, including providing an Annual Review.